RM5b market boost

 

THE government will double the size of Valuecap Sdn Bhd to RM10 billion to buy undervalued shares, providing support to the local stock market, Deputy Prime Minister and Finance Minister Datuk Seri Najib Razak announced yesterday.

Valuecap is a state-owned asset manager set up in 2003 to buy undervalued stocks at a time when global stock markets were worried about the effects of the US-led war against Iraq.

The domestic bourse has slid 37.1 per cent this year as stock markets worldwide suffer the onslaught of the worst financial crisis in decades.

Najib said Malaysia's foreign investment rules will also be reviewed to attract more overseas interest in the property and commercial sectors.

In addition, Malaysia plans to liberalise the services sector to stay competitive as the country prepares itself to brace the slowing world economy, he said.

"Part of the government policy response to manage the global financial crisis is to ensure that our country's competitiveness in attracting foreign and domestic investments is intact," Najib said at the Khazanah Megatrends Forum in Kuala Lumpur yesterday.

A detailed plan will be announced later based on the International Trade and Industry Ministry's proposal, he said.

The government will also likely revise its economic growth forecast of 5.4 per cent for next year, which will be announced on November 4 during the Budge winding-up speech in Parliament, Najib said. SEE PAGE 42, COL. 1